OK I thought I might avoid this explanation.
Some years ago, a friend wanted to bring her car to Spain from UK. She was told she must pay extra for the green car and for 3rd party only cover. After she had been here for a while she contacted the insurance company who told her that she had to buy a new policy to ensure she had 3rd party cover, which she did.
Subsequently I discover the EU Directive and I tried to get the police to prosecuted te company for fraud, in that they had given my friend wrong info and as a result she had paid for another policy. The police would not prosecute but the insurance company paid compensation for the extra unnecessary cover she had bought and for her inconvenience, when I brought the Directive to their notice.
As I said, if the law has not change, which from the Directive I quoted lt has not, then the cover lasts for the whole period of the policy throughput the EU.
In Spain, as far as I remember, throughout the 27 years I have insured vehicles here, a green card has always been issued as standard, with no extra charge, when I have renewed my policy, which covered me for whole period of the policy, for all the EU and I believe a number of other countries too.
Just in passing one can legally leave say a UK reg vehicle in Spain permanently, regardless of ones right to live here, freedom of movement etc, (so that’s a red herring) and if parked on a road, it would need to be covered by insurance.